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I am trying to fill out my S-Corp K-1. I have being in business

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for three years, the first...
I am trying to fill out my S-Corp K-1. I have being in business for three years, the first year an accountant did my taxes. I have never made a profit so this year I filled the 2009 and 2010 together, but I don't know if in each year K-1 I only include the losses for that year or if each year losses should be added.

-3 shareholders. Total initial investment of $15000. (51%, 24.5%, 24.5%)
-2008 Ordinary Business Loss -17,863, K-1 line 1 is -5,954, line 16 is C 3
-2009 Ordinary Business Loss -7,643, don't know what to do on K-1.
-2010 Ordinary Business Loss -1,273, don't know what to do on K-1.
Submitted: 6 years ago.Category: Tax
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Answered in 15 minutes by:
6/1/2011
Tax Professional: MequonCPA, Certified Public Accountant (CPA) replied 6 years ago
MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,342
Experience: CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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Hi and welcome to JustAnswer:

 

The loss for each year is determined separately. The information you are providing for 2008 doesn't correspond to the percentage interests listed. There is probably additional information on Schedule M-1.

 

Also, while each shareholder is provided with their allocated loss, the deductible amount is limited due to the at risk rules.

 

Without additional funds loaned by a given shareholder the loss is suspended until there is basis or income. See Form 6198 and instructions, links below.

 

http://www.irs.gov/pub/irs-pdf/f6198.pdf

 

http://www.irs.gov/pub/irs-pdf/i6198.pdf

 

 

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